Sunday, June 12, 2011

Welcome Changes to the Homeowner/Homebuyer Protection Act

As many of you are probably aware, in 2010 a series of regulations was foisted on landlords who extended an option to purchase the rental property that they were leasing through a law known as the Homeowner and Homebuyer Protection Act, or SB 1015.

Well, it is now 2011 and the real estate investors are in a somewhat friendlier climate. Not sitting idly by, members of the Triangle Real Estate Investors Association and other NC REIA's have secured sponsorship of H654, revisions to the new Homeowner/Homebuyer Protection Act.

Some of the key provisions of the revisions to the Act include:

* Revising the definition of a lease agreement covered by the acts regulations to remove all leases that do not apply a portion of the rent to the option;

* Clarifies that a contract under which the potential purchaser is obligated to buy the property is not a covered option agreement;

* Clarifies that if the seller does not take any payments on the option prior to closing then a payment at closing does not create an equitable right of redemption;

* Allows an injured party to sue under the Unfair and Deceptive Trade Practices Act("UDTPA), but does not declare any violation of the Act an automatic violation of the UDTPA;

* The Act also makes some common sense changes to the requirements pertaining to Land Sale Contracts; and

* With respect to the so called "mortgage rescue scam protections" the Act provides that although a landlord who purchases a property from someone in foreclosure and allows them to remain as a tenant must obtain an appraisal on the property within 90 days of the purchase, he is no longer required to make sure the appraisal is delivered within 3 days of receipt.

This bill deserves your support.

Currently H 654 has passed through the House and is now in the Senate Commerce Committee. Please take some time and contact your local senators and members of the Senate Commerce Committee and let them know that you support H 654!

1 comment:

  1. Well, thanks for the updates on Homeowner and Homebuyer Protection Act, or SB 1015. Changes are made for the suitability of both landlords and tenants and both need to follow all these properly. The rules have been modified a lot now but the minimum things should be followed. Even though there are lots of rules but stills some landlords creates problems for the tenants and the reverse happen in some other cases. Property Management High Point, NC can be considered as the best one to deal with finding affordable houses as well as good tenants. Keep updating.


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